The beginner’s guide to investment trusts

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Investment trusts are traded on the London Stock ExchangeBloomberg via Getty Images

David Budworth

Investment trusts are the grandaddy of the fund world. The first, Foreign
&
Colonial, which is still going strong today, was formed in 1868 to give
smaller investors access to the world’s stock markets.

The idea quickly caught on and investment trusts played a vital role in
funding the 19th-century expansion of America’s railways.

There are now around 390 investment trusts managing £99 billion of assets.
Compared with unit trusts and Oeics (open-ended investment companies) they
remain relatively little understood. If you are keen to find out more, read
on.